Coverage line
Surety Bonds
Distinguish a surety bond from insurance by identifying the required bond form, the obligee requesting it, the business obligation, and claim mechanics.
How to use the Surety Bonds section
Use this section when a customer, license, or contract asks whether a business is bonded. The questions keep the bond obligation separate from insurance coverage and then apply that distinction to a specific service business.
- Identify what was requested
Record the bond name, the party requiring it, the work or license involved, and the required form before comparing products.
- Match the request to the operation
The cleaning-business answer provides an industry-specific route through the bond-versus-insurance question.
- Review insurance evidence separately
If the other party also asks for a certificate or additional-insured status, use the contract-requirements guide for that separate request.
Questions
- Do I need a bond for my cleaning business? No, no state broadly requires a bond just to clean, though some licensing regimes require bonding or insurance. In practice, clients demand a "janitorial bond" so they're reimbursed if your employee steals from them, which makes one effectively mandatory for commercial contracts. Despite the name, that product is fidelity coverage, not a performance-guarantee surety bond.
- Is a surety bond the same as business insurance? No, insurance and a surety bond are different products. Insurance transfers your risk to an insurer that expects to pay losses, while a bond is a three-party guarantee that you will perform an obligation, and if the surety pays your obligee, it recovers the money from you. "Licensed, bonded and insured" names three separate protections, and only the insurance protects your business.